VALUE-BASED MANAGEMENT, LONG TERM SUSTAINABILITY AND CORPORATE SOCIAL RESPONSIBILITY

Dejan Malinić

DOI Number
https://doi.org/10.22190/FUEO210618025M
First page
357
Last page
367

Abstract


Today’s companies, especially large multinationals, are supposed to be financially successful in accordance with the shareholders’ expectations, to operate in compliance with the requirements of sustainable development, taking into account the interests of future generations, as well as to act in a socially responsible manner, serving the interests of key stakeholders, including the interests of the community. In such circumstances, managers are expected to create enough value to satisfy all these interests. The adoption of Value-Based Management (VBM) approach has contributed to a better understanding of shareholders and managers and the alignment of their interests. In this paper, we analyze the compatibility of VBM with the requirements of other stakeholders, including the requirements regarding sustainability and corporate social responsibility. In this context, it could be said that a broader concept of VBM further enhances the interest-based logic behind the corporations’ functioning, but at the same time it enables the integration of the requirements related to sustainability and corporate social responsibility.


Keywords

value-based management, value creation, sustainability, corporate social responsibility, growth

Full Text:

PDF

References


Ameels, A., Bruggeman, W., & Scheipers, G. (2002). Value-based management control processes to create value through integration: a literature review. Gent: Vlerick Leuven Gent Management School.

Black, A., Wright, P., & Bachman, J. (1988). In search of Shareholder Value. London: Pitman Publishing.

Byus, K., Deis, D., & Ouyang, B. (2010). Doing Well by Doing Good: Corporate Social Responsibility and Profitability. SAM Advanced Management Journal, 75(1), 44-55.

Copeland, T., Koller, T., & Murrin, J. (2000). Valuation - Measuring and Managing the Value of Companies. New York: John Wiley & Sons, Inc.

Freeman, E. R., & Dmytriyev, S. (2017). Corprate Social Responsibility and Stakeholder Theory: Learning Each Other. Simfonya Emerging Issues in Management, 7-15.

Gal, G., Akişik, O., & Wooldridge, W. (2018). Sustainability and SocialResponsibility: Regulationand Reporting. Singapore: Springer Nature.

Hawawini, G., & Viallet, C. (2007). Finance for Executives: Managing for Value Creation. Mason: Thomson.

Holler, A. (2009). New Metrics for Value-Based Management - Enhancement of Performance Measurement and Empirical Evidence on Value-Relevance. Wiesbaden: Gabler, GWV Fachverlage GmbH.

Jensen, M. C. (2001). Value Maximization, Stakeholder Theory, and the Corporate Objective Function. Journal of Applied Corporate Finance, 8-21.

Koller, T., Goedhart, M., & Wessels, D. (2020). Valuation: Measuring and Managing the Value of Companies by McKinsey & Company Inc. Hoboken, New Jersey: John Wiley & Sons Inc.

Malinić, D. (2019). Challenges of Creating Sustainable Growth in Infrastructure Sectors: The Gap between Ambitions and Capabilities. Ekonomika preduzeća, Journal of Business Economics and Management, 51-72.

Malinić, D., Milićević, V., & Stevanović, N. (2019). Upravljačko računovodstvo [Management Accounting]. Beograd: Ekonomski fakultet.

Martin, J. D., Petty, W. J., & Wallace, J. S. (2009). Value-Based Management with Corporate Social Responsibility. New York: Oxford University Press, Inc.

Mowen, M. M., & Hansen, D. R. (2011). Introduction to Cost Accounting. South-Western, Cengage Learning.

Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003). Corporate Social Responsibility and Corporate Financial Performance: A Meta-Analysis. Organization Studies, 24(3), 403-441.

Rappaport, A. (1997). Creating Shareholder Value - A Guide for Managers and Investors. Free Press.

Wallace, J. S. (2003). Value Maximization and Stakeholder Theory: Compatible or Not. Journal of Applied Corporate Finance, 120-127.

Wang, Q., Dou, J., & Jia, S. (2016). A Meta-Analytic Review of Corporate Social Responsibility and Corporate Financial Performance. Business & Society, 1-39.

WCED (World Commission on Environment and Development). (1987). Our Common Future. New York: Oxford University Press.

Young, D. S., & O`Byrne, S. F. (2001). EVA and Valued-Based Management - A PracticalGuide to Implementation. New York: McGraw-Hill.




DOI: https://doi.org/10.22190/FUEO210618025M

Refbacks

  • There are currently no refbacks.


© University of Niš, Serbia
Creative Commons License CC BY-NC-ND
ISSN 0354-4699 (Print)
ISSN 2406-050X (Online)